The problem with FCC...

[TPgal]

We all know that NCL and other cruise lines are using increased FCC as an incentive to avoid issuing cash refunds for cancelled sailings.   It's a smart strategy on their part,  they avoid having to spend down their cash reserves for a balance sheet line item against a product that they haven't yet produced.  

 

The problem I see for the consumer is that the cruise lines are limiting when the FCC can be used and they control the pricing on the product.  While they may be forced to extend the windows for use of the FCC certificates based on when cruising can resume, they will always control the pricing.   I would have zero expectation that a 25% increase in the credit will result in being able to upgrade my original room type or add on those wonderful extras that we like, but complain about.   I think the number of bookings that will occur without any additional payments to the cruise lines will be few and far between.   It would be very interesting to see the numbers on these when they start to occur.

The higher cost for future cruises could be attributed to additional hygiene procedures, reduced capacity, training and staffing, limited itineraries.  

I also worry that the sailings with high numbers of FCC users will not be financially viable for the cruise line and will contribute to future value loss for the shareholders.  

Lastly, if I ran the world, and we should all be very thankful that I don't, I would ensure that NCL  be organized enough to have "welcome back, we appreciate you" genuine acknowledgement for every booking that uses the FCC.   Traditional marketing strategies are fine to resume once the world opens back up, but NCL knows who all have these credits and should be treating these folks like the angel investors that they are.  

 

I hope you're all safe and can't wait to see you safely on board in the future.

Feel free to let me know if you think I'm off base.  

 

[BirdTravels]

Cruise lines are a business. It is just like any other business (shop, store, restaurant) in your neighborhood. Everyone is trying to make ends meet. Everyone is at the mercy of their suppliers who are trying to make ends meet. The Costco down the street has big signs in some areas stating that "the cost of the items are higher than normal because the supplier has raised their price". At this point in time, no vendor can pretend that things are the same as they were in January. And no business can be shut down for months and incur no expense. Even my hair stylist has had to increase her prices, trying to keep from going bankrupt, and they reopen. 

 

For us, we acknowledge that it is the cost of the new norm. And that you can not ignore that a very bad thing happened. And is recurring across the country today because people don't get that there is a new norm that they need to acknowledge and come to grips with. 

[Travelling2Some]

My first reaction back in very early March was to quickly book a 2021 cruise precisely because I suspected NCL would raise prices to make up for all the FCC.  As you say, one of the problems with accepting FCC is that NCL has total control over future pricing.  They other problem with FCC that concerned me was the possibility of bankruptcy (them, not me).  Not being an "angel investor" I booked a cruise but still insisted on a cash refund rather than FCC.  Now I can either take the cruise I booked or spend my money elsewhere.  Only God and your mama give you stuff for free, lol.  There is never a free lunch and a bird in the hand is better than one in the bush.

[Comi.uy]

The FCC worked out great for me, managed to switch a 12 day cruise with an inside for 2 b2b cruises (32 days!) with a window and having to pay a bit extra. Also later they upgraded my rooms from small with small windows to larger with panoramic windows so atm its working fine for me!

[Love my butler]

29 minutes ago, Comi.uy said:

The FCC worked out great for me, managed to switch a 12 day cruise with an inside for 2 b2b cruises (32 days!) with a window and having to pay a bit extra. Also later they upgraded my rooms from small with small windows to larger with panoramic windows so atm its working fine for me!

Good luck.

[dexddd]

I took a FCC with another line.  If I had a trip booked with NCL I would have gone for full refund.

 

NCL had the opportunity to welcome guests back and appreciate them for the last few years but their practices and actions have been the opposite IMO.

[TSUmom]

12 hours ago, Comi.uy said:

The FCC worked out great for me, managed to switch a 12 day cruise with an inside for 2 b2b cruises (32 days!) with a window and having to pay a bit extra. Also later they upgraded my rooms from small with small windows to larger with panoramic windows so atm its working fine for me!

I just did the same thing.....My FCC from Alaska was more than enough to use for a b2b and a better cabin too.  I figure it is not costing me any extra $$ so why not.

[phillyguy31]

A couple of things to keep in mind .

The prices were going up even before this all began, so until they actually start up again my guess is that these prices are on autopilot.  When they resume cruising and they can see what actual guest count is then they will adjust accordingly.  If they fill the ships up to their number (what ever that may be) why would you adjust the price down. On the other hand if bookings are not up to what they think they should be then of course the price will decrease.

 

[MsTabbyKats]

2 hours ago, dexddd said:

I took a FCC with another line.  If I had a trip booked with NCL I would have gone for full refund.

 

NCL had the opportunity to welcome guests back and appreciate them for the last few years but their practices and actions have been the opposite IMO.

I would have done the same thing if I had a cruise booked with NCL.  Because of their "free" incentives (ha ha to that) we always book sailaway close to the sail date and end up with great rates.  Booking early, for us, doesn't work.

 

However, on Carnival, I had a $100 deposit on a booking that was canceled.  I had a choice...cash refund or FCC plus $600 OBC.  So, I took the bait...and booked an inexpensive Sept 2021 sailing.  Financially it works out well (assuming the ship sails).

[luv2kroooz]

23 hours ago, BirdTravels said:

Cruise lines are a business. It is just like any other business (shop, store, restaurant) in your neighborhood. Everyone is trying to make ends meet. Everyone is at the mercy of their suppliers who are trying to make ends meet. The Costco down the street has big signs in some areas stating that "the cost of the items are higher than normal because the supplier has raised their price". At this point in time, no vendor can pretend that things are the same as they were in January. And no business can be shut down for months and incur no expense. Even my hair stylist has had to increase her prices, trying to keep from going bankrupt, and they reopen. 

 

For us, we acknowledge that it is the cost of the new norm. And that you can not ignore that a very bad thing happened. And is recurring across the country today because people don't get that there is a new norm that they need to acknowledge and come to grips with. 

Yet, my internet provider removed data caps months ago and it continues today. Same with mobile phone plan....still no data caps. So, some businesses have changed in a consumer-friendly way...at least for now. 

Edited June 18, 2020 by blcruising

[dexddd]

13 hours ago, blcruising said:

Yet, my internet provider removed data caps months ago and it continues today. Same with mobile phone plan....still no data caps. So, some businesses have changed in a consumer-friendly way...at least for now. 

I'd agree with you on that.  After receiving notices from every conceivable company in March how they were dealing with the pandemic including trash provider, there are some unfriendly tactics with some cruise lines. Spectrum just raised our rates 25%.

 

Most other companies being very flexible.

[TSUmom]

15 hours ago, blcruising said:

Yet, my internet provider removed data caps months ago and it continues today. Same with mobile phone plan....still no data caps. So, some businesses have changed in a consumer-friendly way...at least for now. 

But cruising is not considered a necessity.  My car insurance even gave me a discount because people are not driving as much, my cc card company keeps asking me if they can help too, keep hoping they will just decrease my balance a bit 😉

 

[Travelling2Some]

I'm truly glad the math has worked out for some but do consider that you are essentially lending thousands of dollars to NCL at zero interest from the time you paid for the original cruise until the time you actually sail on the new one, assuming all goes well and you actually do sail on the replacement cruise.  Also, by accepting FCC instead of cash you limit yourself to NCL and give up your choice to plan a different vacation next year should you see something you'd rather do.  I also just have a strong preference for keeping my options open and my money in my own pocket.

[Love my butler]

55 minutes ago, Travelling2Some said:

I'm truly glad the math has worked out for some but do consider that you are essentially lending thousands of dollars to NCL at zero interest from the time you paid for the original cruise until the time you actually sail on the new one, assuming all goes well and you actually do sail on the replacement cruise.  Also, by accepting FCC instead of cash you limit yourself to NCL and give up your choice to plan a different vacation next year should you see something you'd rather do.  I also just have a strong preference for keeping my options open and my money in my own pocket.

Well said.  My money, my choice.

[sanger727]

5 hours ago, Travelling2Some said:

I'm truly glad the math has worked out for some but do consider that you are essentially lending thousands of dollars to NCL at zero interest from the time you paid for the original cruise until the time you actually sail on the new one, assuming all goes well and you actually do sail on the replacement cruise.  Also, by accepting FCC instead of cash you limit yourself to NCL and give up your choice to plan a different vacation next year should you see something you'd rather do.  I also just have a strong preference for keeping my options open and my money in my own pocket.

completely agree. This is why I wouldn’t take FCC and why I don’t buy cruise next certificates. On its surface it sounds like a deal. But my last norwegian cruise was in 2017 and they would expire before I could use them if I had bought them. The next two trips I want to take are a trip to Asia (May or may not include a cruise) and an Alaska cruise and Norwegian isn’t the company we would choose for either of those. Don’t like to be locked in.

[moosecrouse]

5 hours ago, Travelling2Some said:

I'm truly glad the math has worked out for some but do consider that you are essentially lending thousands of dollars to NCL at zero interest from the time you paid for the original cruise until the time you actually sail on the new one, assuming all goes well and you actually do sail on the replacement cruise.  Also, by accepting FCC instead of cash you limit yourself to NCL and give up your choice to plan a different vacation next year should you see something you'd rather do.  I also just have a strong preference for keeping my options open and my money in my own pocket.

I would have to disagree with the idea that you aren't getting a return on the FCC. You are actually earning 25% by taking the FCC. There are very limited options that will get you that type of return in a short period of time. 

[MsTabbyKats]

3 hours ago, moosecrouse said:

I would have to disagree with the idea that you aren't getting a return on the FCC. You are actually earning 25% by taking the FCC. There are very limited options that will get you that type of return in a short period of time. 

That's only if the prices remain stable or you can find a cruise at the original price of the one you paid for.

[Budget Queen]

32 minutes ago, MsTabbyKats said:

That's only if the prices remain stable or you can find a cruise at the original price of the one you paid for.

It’s not the issue of “original “ price.   I’m absolutely not limiting myself to only a similar cruise.- to repeat.      And if prices are higher you have some NCL money paying toward it.      
 

Of course if you aren’t sailing for years- this is not the opportunity to consider.     But if you typically take multiple cruises every year (which a lot do).  This could work well.   

[MsTabbyKats]

Just now, Budget Queen said:

It’s not the issue of “original “ price.   I’m absolutely not limiting myself to only a similar cruise.    And if prices are higher you have some NCL money paying toward it.      
 

Of course if you aren’t sailing for years- this is not the opportunity to consider.     But if you typically take multiple cruises every year (which a lot do).  This could work well.   

No doubt it will work for many people....but I was pointing out that it's not a 25% return on your investment.

For me it wouldn't be good because I book sailaway rates close to the sailing.  If they offered a 25% OBC...yeah!

 

Carnival (I prefer NCL) gave me $600 OBC plus $100 FCC for a $100 deposit (600% bonus!).   I booked a cruise/cabin based on "making it worthwhile". That's not until Sept 2021....just about the last cruise I was entitled to book and get the credit.  I never turn down a good deal!

 

  

 

 

[Budget Queen]

3 minutes ago, MsTabbyKats said:

No doubt it will work for many people....but I was pointing out that it's not a 25% return on your investment.

For me it wouldn't be good because I book sailaway rates close to the sailing.  If they offered a 25% OBC...yeah!

 

 

  

 

 

Not following you???    I pretty much-  always book Sail away and maybe even later than you.  Frequently less than a week prior.      There aren’t any restrictions on earning or paying for Sailaway  with the 25%.   FCC.   

[MsTabbyKats]

2 hours ago, Budget Queen said:

Not following you???    I pretty much-  always book Sail away and maybe even later than you.  Frequently less than a week prior.      There aren’t any restrictions on earning or paying for Sailaway  with the 25%.   FCC.   

Sorry....I was literally comparing apples and oranges....and thinking "in Carnival"...lol

 

I don't know when you have to use the NCL credit by.....how far into the future.

 

With Carnival I have until 12/31/20 to choose a cruise that sails  up to 12/31/21....so I was thinking that I'd have to pick by this Dec for NCL too.  NCL sails out of NYC year-round...so in normal times there'd be no problem.  Carnival only sails during "warm weather" so I had to book early.  In addition...NCL has much better last minute rates; Carnival...not the deep discounts.

 

You're correct...if I found I cruise I liked within their time frame, I'd be able to use it for sailaway.

 

BTW....until when is the 25% good?

[Budget Queen]

3 minutes ago, MsTabbyKats said:

 

With Carnival I have until 12/31/20 to choose a cruise that sails  up to 12/31/21....so I was thinking that I'd have to pick by this Dec for NCL too.  NCL sails out of NYC year-round...so in normal times there'd be no problem.  

 

BTW....until when is the 25% good?

You only sail out of NY-   Last minute?    Yes that is very limiting 

 

the NCL 25% FCC. Has to be used in full and within 1 year of issue.   

[MsTabbyKats]

Just now, Budget Queen said:

You only sail out of NY-   Last minute?    Yes that is very limiting 

 

the NCL 25% FCC. Has to be used in full and within 1 year of issue.   

Yeah....it is limiting.  But, we live something like 10 minutes by cab (or 30 minutes by foot) to the pier. Getting to the airport...going thru TSA....flying...getting a cab to a ship....lol...too much time and energy involved.

 

My "thing" is to sail on different ships...it's like different countries!  Different entertainment, different food etc.  If I wanted a specific port I'd just fly there...but....for us, cruising is just so easy.  When we were young "we traveled the world".  Now, just give me a nice buffet, a good show, a casino...and I'm happy.

 

With NCL I watch the prices/availability like a hawk and end up with very good deals (or at times, miss the ship). 

 

 

[mscdivina2016]

On 6/17/2020 at 7:06 PM, Travelling2Some said:

  They other problem with FCC that concerned me was the possibility of bankruptcy (them, not me).  Not being an "angel investor" I booked a cruise but still insisted on a cash refund rather than FCC.  

 If you purchased the correct insurance you would be covered for a refund even if its all credit. I would assume the extra 25% would not be insured but your original outlay.

 

Also do you think NCL would file bankruptcy, cause everyone to lose their money, restart and think all is well? I personally would not want poed people on my expensive ship.

Steve

[joeyancho]

12 hours ago, mscdivina2016 said:

 

 

Also do you think NCL would file bankruptcy, cause everyone to lose their money, restart and think all is well? I personally would not want poed people on my expensive ship.

Steve

Usually bankruptcy is not a choice.